NEWS RELEASE: 10,000 people sign a petition opposing any increase in mining royalties

QUÉBEC CITY, April 9, 2013 /CNW Telbec/ – The Québec Mining Association (QMA) has made public a petition asking the Québec government to review its plan to change the mining tax regime in Québec. To date, over 10,000 people have shown their support for the mining industry by signing the petition.

The wording of the petition is clear: “I am not against mining royalties, but I believe they must allow a form of mineral resource development that is profitable and economically acceptable. A change to the current tax regime could lead to mine closures and the postponement of several key projects; it could also drive away investors and lead to a loss of jobs throughout Québec. I am therefore opposed to any change to the mining tax system.”

“The fact that 10,000 people have taken the time to sign the petition to indicate their support for the mining industry shows that the population is on our side and that people appreciate the positive impact of our industry in Québec. It is interesting to note that the messages of support we have received come from all across Québec, and not just from the mining regions,” says Josée Méthot, QMA President and CEO.

The Québec Mining Association believes that the Forum on mining royalties provided an opportunity for discussion, and a way for mining companies to make their voices heard. “Our goal is not to frighten people, but the risk of lost investment is real, and the damage caused to the Québec economy could be far greater than the benefits derived from an increase in royalties. The government appears to be sensitive to our concerns, and we hope that our position will influence the decision-makers,” Ms. Méthot continues. She also pointed out that Québec is a marginal producer at the global level, facing competition from other mining jurisdictions around the world to attract capital and mining projects, and maintain jobs.

According to a recent survey of mining industry executives around the world conducted by the Fraser Institute, Québec slipped from 5th to 11th place in the ranking of the best jurisdictions in which to invest, after ranking first from 2007 to 2010. Québec has already the highest royalties and corporate tax rates among all the main mineral-producing provinces in Canada. In the spring of 2012 it was estimated that, under the current mining royalty regime, both levels of government would receive around $5 billion in tax revenues for the 2011-2015 period.

The Quebec Mining Association (QMA) represents metal and mineral mining companies, metallurgy companies, mining contractors and junior mining exploration companies in Quebec.

SOURCE: QUEBEC MINING ASSOCIATION

For further information:

Josée Méthot, President and CEO
André Lavoie, Director, Communications and Public Affairs
Phone: 418 657-2016, extension 107
E-mail: alavoie@amq-inc.com

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